climate change 2017 - ebay inc. · i) description of how the business strategy has been influenced...

Climate Change 2017 - eBay Inc. Module: Introduction Page: Introduction

CC0.1 Introduction Please give a general description and introduction to your organization. eBay Inc. (NASDAQ: EBAY) is a global commerce leader including the eBay, StubHub and eBay Classifieds platforms. Collectively, we connect millions of buyers and sellers around the world, empowering people and creating opportunity through Connected Commerce . Founded in 1995 in San Jose, Calif., eBay is one of the world's largest and most vibrant marketplaces for discovering great value and unique selection. eBay was founded on the simple belief that people are basically good. Our technology has leveled the playing field by enabling people to connect and trade around the world, regardless of their circumstances or location. We believe that commerce should be not just transactional but rather transformational. Through our platforms, we are creating a better, more sustainable form of commerce that empowers people and creates opportunity. And we are committed to reducing the environmental impact of our platform by increasing efficiency, expanding our use of cleaner energy and using our global marketplace to extend the life of goods in a more circular economy. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com. For more information on our environmental initiatives, please visit http://ebayinc.com/global-impact/.

CC0.2 Reporting Year Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

Enter Periods that will be disclosed

Fri 01 Jan 2016 - Sat 31 Dec 2016

CC0.3 Country list configuration Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completing your response.

Select country

Australia

Select country

Belgium

Canada

China

Czech Republic

Denmark

France

Germany

India

Ireland

Israel

Italy

South Korea

Luxembourg

Malaysia

Mexico

Netherlands

Norway

Singapore

Spain

Sweden

Switzerland

Taiwan

Thailand

Turkey

Ukraine

United Kingdom

United States of America

Japan

CC0.4 Currency selection Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. USD($)

CC0.6 Modules

As part of the request for information on behalf of investors, companies in the electric utility sector, companies in the automobile and auto component manufacturing sector, companies in the oil and gas sector, companies in the information and communications technology sector (ICT) and companies in the food, beverage and tobacco sector (FBT) should complete supplementary questions in addition to the core questionnaire. If you are in these sector groupings, the corresponding sector modules will not appear among the options of question CC0.6 but will automatically appear in the ORS navigation bar when you save this page. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below in CC0.6.

Further Information

Module: Management Page: CC1. Governance

CC1.1 Where is the highest level of direct responsibility for climate change within your organization? Board or individual/sub-set of the Board or other committee appointed by the Board

CC1.1a Please identify the position of the individual or name of the committee with this responsibility Two eBay Board of Director members serve as mentors to the Global Impact team, building on eBay’s long legacy of driving comm erce for good and driving strategies that further strengthen and advance eBay Global Impact. Each of eB ay’s goals is sponsored by a member of the Executive Leadership Team to ensure we prioritize and remain accountable to achieving these targets at the highest levels of our business. The Global Impact team works across the organization to help our business groups and functions prioritize ESG as part of the company’s strategy. This includes cross -company collaboration on goal setting, impact measurement, and reporting, which is shared annually on eBay’s Global Impact website.

CC1.2 Do you provide incentives for the management of climate change issues, including the attainment of targets? No

Further Information

Page: CC2. Strategy

CC2.1 Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities A specific climate change risk management process

CC2.1a Please provide further details on your risk management procedures with regard to climate change risks and opportunities

Frequency of

monitoring To whom are results

reported? Geographical areas considered

How far into the future are

risks considered? Comment

Annually

Board or individual/sub-set of the Board or

eBay evaluates climate change risks and opportunities at the global level using a cross-functional governance model. This evaluation occurs annually, at a minimum, > 6 years

Our Global Impact team coordinates the evaluation of and response to risks and opportunities with leadership across a number of key functional areas including operations (workplace. data center), finance, government

mailto:[email protected]

Frequency of

monitoring To whom are results

reported? Geographical areas considered

How far into the future are

risks considered? Comment

committee appointed by the Board

but with higher frequency in regions where our operational footprint is most significant, specifically our major data center locations (Utah, Nevada).

relations, legal and investor relations. Stakeholders from these teams develop specific responses to these risks & opportunities for their functional area and provide inputs to and review/approve the annual assessment and disclosure of these risks & opportunities.

CC2.1b Please describe how your risk and opportunity identification processes are applied at both company and asset level At the company level: eBay has a specific climate risk management process coordinated through the Global Impact (GI) function . Subject matter experts from the GI team actively engage with key global functions - finance, government relations, and operations teams – to evaluate climate risks and opportunities (R/O), interpret them into a business R/O framework and develop recommendations that can then be acted upon by decision maker s. The team also consults external subject matter experts to identify opportunities as well as social/policy/environmental issues that could materially impact our business. As R/Os are identified the appropriate teams evaluate and implement response measures. An example outcome from this process is eBay’s 100 % renewable energy (RE) goal. In our 2016 ESG materiality assessment, energy was identified as a top stakeholder concern. The team partnered with fin ance and operations to assess the feasibility of RE and with the Global Communications team to assess reputation and other R/Os pre sented by setting the goal. Sign-off from these leaders was then taken to the executive leadership team for approval. At the asset level: Individual functional teams have their own processes, with the GI team serving an “advise and support” ro le. Our Critical Infrastructure Engineering (data centers) team has defined processes for identifying risks and mitigation measures in the design and siting of new data centers as well as cleaner energy sourcing opportunities. Our Workplace Resources team prioritizes efficiency and cost management throughout eBay’s facilities, and partners with the GI team to evaluate the potential environmental impacts of proposed projects. These impacts are used as inputs to th e overall decision-making process. The GI team also serves as an interface between the Global Communications and functional teams, contextualizing environmental impacts and developing both reactive and proactive communications for key stakeholder groups as needed.

CC2.1c How do you prioritize the risks and opportunities identified? eBay prioritizes climate-related risks and opportunities based on implications across three dimensions: Financial, Reputation, and Employees. Financia l includes both the potential for increased or decreased costs as well as new revenue potential and impact on investor sentiment. Reputation encompasses both risks with key stakeholder groups (investors, NGOs, employees, customers) but also the opportunity to show leadership and dif ferentiate ourselves through a strong climate change response strategy. Our surveys of employee sentiment as well as on-going feedback from those employees make it clear that they highly value our commitment to running our business in an environmentally and socially responsible manner. Further, competition fo r new talent is fierce, and we strongly believe that these commitments are a key tool for attracting and retaining high -quality employees. We used this prioritization approach in 2016 to identify two key sustainability focus areas for our Global Impact str ategy – circular economy and renewable energy. In the case of circular economy, our research and interviews with stakeholders indicate that eBay not only has a stro ng reputation in this area already, but that the positive carbon impacts of our pre-owned business far exceed the negative impacts of our own operations. Further, we have received strong feedback from leaders and other employees that the CE message resonates as a positive attribute of our business and a potenti al differentiator. Setting our 100% renewable energy goal included an assessment of the potential financial and reputation risks and opportunities. While it is l ikely that short term energy costs could rise as we implement renewable contracts, these are expected to be very modest and far sur passed by the reputation uplift (and risk

avoidance) of committing to a low-carbon energy supply within the next 10 years (2025).

CC2.2 Is climate change integrated into your business strategy? Yes

CC2.2a Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process i) Description of how the business strategy has been influenced - In September 2016, eBay partnered with GlobeScan, an independent research firm, to update our company’s environmental, social and governance (ESG) focused materiality assessment. Through assessment research and stakeholder engagement process, we prioritized and mapped-out the issues that are most important—both from an opportunity and a risk perspective—to eBay as a business and to our most important stakeholders. Two climate-relevant issues, energy and sustainable consumption, were considered most critical by both internal and external stakeholders. ii) At least one example given of how the business strategy has been influenced - The two priority focus areas (of 5 total) related to climate that were identified in our materiality analysis – energy and sustainable consumption - along with suggested potential goals to address these issues, were presented to eBay’s CEO and Board of Directors for review. They in turn tasked the Global Impact team with facilitating a goal -setting process across the appropriate functional areas and business units. For energy, this included both the Critical Infrastructure Engineering (CIE) and Workplace Resources (WPR) teams, as well as Government Relations and Finance. To address sustainable consumption, this included the North America and UK eBay Mar ketplaces teams. Through a collaborative process, eBay performed benchmarking to understand the RE aspirations of peer companies to qualitatively assess the potential reputation impact of an ambitious renewable energy target (and reputation risk without one). Using that information, as well as market a nd cost analyses, the cross-functional team developed a suggested timeline, estimated costs, and known R/Os of a 100% renewable energy target, which was ultimately approved by executive leadership. iii) What aspects of climate change have influenced the strategy – eBay has identified R/Os across a number of opportunity drivers, as detailed in Sections 5 and 6. Many of these are expected to have direct impacts across eBay’s value chain, but indirect impacts on eBay itself. As a result, these factors are addressed primarily in eBay’s strategy via business continuity, crisis management, procurement, etc. However, the risk from changing consumer behaviors and opportunity presented with respect to reputation are more directly addressed by business strategy. In the case of the risk of changing consumer behavior, eBay continues to offer new and augmented services to appeal to both existing and new customers. In 2016 we expanded our inte rmediated selling services to increase customer convenience. These included eBay Valet (intermediated selling) and Click & Coll ect, which offers eBay pickup/dropoff lockers in major stores. By making it easier and more convenient to sell pre-owned items, these services are helping increase the life of items and reduce demand for new ones, ultimately reducing the impacts of commerce on climate change. eBay also added using 100% renewable electricity by 2025 to the company strategy. We believe this will build reputation with stakeholders and affinity for our brand with employees and customers. iv) How the short term strategy has been influenced by climate change – For eBay, short-term strategies are those whose impacts are realized in the 1-3 year timeframe. The most important components of meeting the short-term business strategy include reducing operational costs via energy efficie ncy projects such as installing real-time energy monitoring at our Dublin, Ireland location. Another key short-term business strategy aligned with reducing climate impacts is our focus on expanding our consumer-to-consumer (C2C) selling business, which is the key driver of circular commerce activity on eBay. Sales of pre-owned items both reduce carbon emissions as compared to a new item and produce downstream economic benefit for both sellers and buy ers. v) How the long term strategy has been influenced by climate change - Long term strategy at eBay is 3 years and beyond. Our goal to power eBay with 100% renewable electricity by 2025 is the primary way eBay has integrated responding to climate change in our business strategy. R eaching this goal will be a cross-functional effort across many different teams over several years, and achieving it will require those teams to resource their participation in the goal appropriately. vi) How this is gaining you strategic advantage over your competitors – the online commerce space is highly competitive, and eBay competes with many other

companies, both large and small, old and start-ups, for attention from the market. In addition, the demographics of potential buyers are changing – younger customers are eager to spend their money with brands they feel reflect their values. eBay believes that our GI strategy and programs, including transparenc y about our climate change impacts and our work to reduce them, can be a competitive differentiator not only with these custome rs but also in the minds of investors and potential employees. vii) Business strategy linked to GHG reduction target - Commerce can often be synonymous with overconsumption and waste, two things that drive carbon emissions and climate change among many other environmental challenges. Through our materiality analysis and creation of our GI strategy, it became clear that the more sustainable, circular model of commerce that happens on our platforms has enormous potential to both cut carbon emissions and drive economic benefit. A sensitivity analysis of eBay’s selling categories had shown that Fashion and Electronics, two priority busin ess verticals also had clear carbon and economic upsides when comparing a pre-owned versus new item. Using this same methodology and working closely with teams in both North America and the UK, we developed a CE goal aligned with the goals the company has around our C2C selling business, where much of the inventory is pre-owned. Our aspiration is that, by 2020, the C2C business will deliver 2.5 million tonnes of avoided carbon. Not only does this goal align with the business’s goals, but we expect that our CE impact assessment methodology and communications about our positive impacts will reflect pos itively on our brand and enhance our reputation. viii) Most substantial business decision made and the aspect of climate change that impacted the decision: Setting a 100% ren ewable energy target was the most substantial business decision made in 2016 that was influenced by climate change. T his far surpasses in ambition the only other renewables goal made in the company’s history (8% of total electricity from renewable sources by 2015, set in 2012) and reflects an increased priorit y on reducing the carbon intensity of eBay’s business as our most direct way to respond to risks presented by climate change.

CC2.2c Does your company use an internal price on carbon? No, but we anticipate doing so in the next 2 years

CC2.3 Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply) Direct engagement with policy makers Trade associations Other

CC2.3a On what issues have you been engaging directly with policy makers?

Focus of legislation

Corporate Position Details of engagement Proposed legislative solution

Other: comprehensive climate change policy Support

eBay is a strong supporter of climate action nationally and in our headquarters state of California. We were a business voice in support of the landmark AB32 legislation and have continued to support state policy to strengthen and clarify AB 32 implementation. While AB32 was game changing, the emissions reduction mandates only extended through 2020. To continue momentum and address the need for larger GHG reductions globally, it was proposed the state create a more ambitious target and extend these targets to 2030. At the request of NGO stakeholders, eBay reached out to individual law makers to encourage their support of the bill.

Extend the GHG emissions reductions required by California AB32 beyond 2020, mandating a 40% reduction by 2030. Senate Bill 32 was signed by the governor in September 2016

CC2.3b Are you on the Board of any trade associations or provide funding beyond membership?

Yes

CC2.3c Please enter the details of those trade associations that are likely to take a position on climate change legislation

Trade association

Is your position on climate change

consistent with theirs? Please explain the trade association's position

How have you, or are you attempting to, influence the position?

TechNet Consistent

TechNet advocates for a robust energy policy that encourages true competition in the energy market. TechNet also supports state policies to spur deployment of clean energy resources such as fuel cells, solar, wind, demand-side, advanced clean combustion, and clean transportation, and will work diligently to advance them. TechNet also supports smart grid technologies that increase the reliability and resilience of the electric grid; enable clean technologies and electric vehicles; and help consumers reduce their electric bills. TechNet supports empowering consumers with access to their energy data and new tools to help consumers cut energy use. TechNet also supports efforts to expand or create new programs should be inclusive, balanced, and data-driven in order to achieve stated aims and avoid significant disruption.

As a member of TechNet, eBay regularly participates in policy discussions among members and association leadership. eBay also works with association leaders to help develop TechNet’s advocacy strategy.

CC2.3e Please provide details of the other engagement activities that you undertake eBay is a member and serves on the steering committee of Business for Innovative Climate and Energy Policy (BICEP), which is an advocacy coalition of businesses with the overall goal of supporting, “broad, bi-partisan consensus among policy makers to reduce US greenhouse gas emissions 80 percent below 1990 levels by 2050, with an interim goal of at least 25 percent below 1990 levels by 2020.” Via our leadership role in BICEP , we regularly support state and federal legislation and global policy that reinforces BICEP’s position on climate change. As a BICEP member, eBay has signed on to the Climate Declaration, a call to action from leading American businesses and individuals urging policymakers and business leaders to seize the economi c opportunity in tackling climate change. In 2015, eBay joined dozens of companies and organizations in the Business Backs a Low Carbon USA initiative, which calls on the US government to support strong action on climate change both nationally and abroad, including the Paris Clim ate Accord. .” Most recently via BICEP, eBay reaffirmed corporate commitment to reducing carbon emissions by signing on to the “We Are Still In” initiative, which is a co llection of over 1,200 policymakers, businesses, investors, and higher education institutions that support the Paris Climate Agreement. eBay Inc. is a founding member of the Future of Internet Power, a working group convened via Business for Social Responsibili ty (BSR). This group is comprised of leading technology companies that will share and promote best practices and develop a platform for driving low-carbon, sustainable power for data centers in collaboration with select utilities and policymakers. eBay Inc. is also a member of the Silicon Valley Leadership Group. The Leadership Group is a key player in helping ensure the implementation of California’s AB 32 rewards efficiency, protects innovation and provides flexibility to seek out and implement the lowest -cost solutions, while also meeting our greenhouse gas reduction goals. In addition, the Leadership Group is increasingly active in federal-level advocacy for smart energy and climate policies. eBay is a member of the Renewable Energy Buyers Alliance and a signatory of the Corporate Renewable Energy Buyers Principles. Companies across the US want to power their operations with clean and renewable energy but navigating the path to renewables is harder than it should be. REBA exists to make the transition easier by helping companies understand the benefits of moving to renewables, conne cting corporate demand to renewable energy supply, and helping utilities better understand and serve the needs of corporations eBay is a founding member of the Business Renewables Center. This initiative by the Rocky Mountain Institute will serve as a guiding organization for companies seeking to build and expand their use of renewable energy and will provide members with three services: • Navigation – guidance on strategy, contracts, making the internal business case and hiring expert assistance

• Connections and access to experts • Exploration of new market opportunities

CC2.3f What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy? To ensure a coordinated approach to and positions on climate and energy policy activities, regular meetings are held regularly bet ween Global Impact and Government Relations staff, and on an ad hoc basis with other internal stakeholders from Global Communicatio ns, Finance and operations. Agendas for these meetings include business impacts, pending policy initiatives and discussion of how these do or do not align with our corpora te climate and energy strategy, as well identify any opportunities/requests to engage with external stakeholders on these activities.

Further Information

Page: CC3. Targets and Initiatives

CC3.1 Did you have an emissions reduction or renewable energy consumption or production target that was active (ongoing or reached completion) in the reporting year? Absolute target Renewable energy consumption and/or production target

CC3.1a Please provide details of your absolute target

ID Scope

% of emissions in

scope

% reduction from base

year Base year

Base year emissions covered by

target (metric tonnes CO2e)

Target year

Is this a science-based target? Comment

Abs1

Scope 1+2 (market-based) 70% 100% 2016 75660 2025

No, but we anticipate setting one in the next 2 years

Applicable for eBay's owned and leased facilities where eBay currently has procurement control, which is defined as those sites where eBay receives invoices and pays for energy.

CC3.1d Please provide details of your renewable energy consumption and/or production target

ID

Energy types covered by

target Base year

Base year energy for energy type covered (MWh)

% renewable energy in base

year Target

year

% renewable energy in target

year Comment

RE1 Electricity consumption 2016 323138 54% 2025 100%

Applicable for eBay's owned and leased facilities where eBay currently has procurement control, which is defined as those sites where eBay receives invoices and pays for energy.

CC3.1e For all of your targets, please provide details on the progress made in the reporting year

ID % complete (time)

% complete (emissions or renewable energy)

Comment

Abs1 0% 0% 2016 is the base year for this target

RE1 0% 0% 2016 is the base year for this target

CC3.2 Do you classify any of your existing goods and/or services as low carbon products or do they enable a third party to avoid GHG emissions? No

CC3.3 Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases) Yes

CC3.3a Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Stage of development Number of projects Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation 1 18

To be implemented* 3 996

Implementation commenced* 0 0

Implemented* 5 28466

Not to be implemented 0 0

CC3.3b For those initiatives implemented in the reporting year, please provide details in the table below

Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e) Scope

Voluntary/ Mandatory

Annual monetary

savings (unit currency - as specified in

CC0.4)

Investment required (unit currency - as specified in

CC0.4)

Payback period

Estimated lifetime of

the initiative Comment

Low carbon energy purchase

RECs purchased equivalent to 100% of total energy use for Las Vegas co-located data centers beginning January 2016. 27611

Scope 2 (market-based) Voluntary 0 0 <1 year Ongoing

Energy costs included as part of eBay's contract with our co-location provider. No additional investment by eBay was necessary.

Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e) Scope

Voluntary/ Mandatory

Annual monetary

savings (unit currency - as specified in

CC0.4)

Investment required (unit currency - as specified in

CC0.4)

Payback period

Estimated lifetime of

the initiative Comment

Low carbon energy purchase

RECs purchased equivalent to 100% of total energy use for Portland, OR office beginning January 2016. 803

Scope 2 (location-based) Voluntary 0 0 <1 year Ongoing

There is a minimal net cost for this measure, but eBay feels the payback in employee engagement and overall reputation is more than adequate.

Behavioral change

Staff energy awareness program 0

Scope 1 Scope 2 (market-based) Voluntary 0 0 <1 year 6-10 years

Any impact on CO2 and energy use is expected to be an indirect result of this campaign

Energy efficiency: Processes

Hubgrade real time energy monitoring, reporting, and alarms 45

Scope 2 (market-based) Voluntary 12901 10000 <1 year 6-10 years

Energy efficiency: Building services

Kitchen AHU winter set back 7

Scope 2 (market-based) Voluntary 2366 5000 <1 year 3-5 years

CC3.3c What methods do you use to drive investment in emissions reduction activities?

Method Comment

Dedicated budget for other emissions reduction activities

eBay has set a 100% renewable electricity target, so procurement (whether via on-site installations or off-site contracts) of lower-carbon energy is part of company strategy.

Employee engagement

Employee engagement is a key foundational element of eBay Inc.’s Global Impact strategy. The origins of our environmental programs can be traced directly back to the grassroots passion of our employees. Our Global Impact teams continue this legacy. These teams are briefed regularly on our energy and carbon approach, as well as educated about local initiatives that can impact our overall carbon footprint. Many of the extended team who work in operational energy efficiency, greener building, renewable energy and other areas are also Global Impact team members

Further Information

Page: CC4. Communication

CC4.1 Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)

Publication Status Page/Section reference

Attach the document Comment

In voluntary communications Complete Pages 10 - 16 of the attached document (Environmental Footprint) GI_FY2016_Report_R3_04172017.pdf

Further Information

Module: Risks and Opportunities Page: CC5. Climate Change Risks

CC5.1 Have you identified any inherent climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply Risks driven by changes in regulation Risks driven by changes in physical climate parameters Risks driven by changes in other climate-related developments

CC5.1a Please describe your inherent risks that are driven by changes in regulation

Risk driver Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications Management

method Cost of

management

Fuel/energy taxes and regulations

The potential for fuel and energy taxes and regulations expose eBay to risk both in terms of increased costs and decreased revenue. Operationally, energy is an essential input to eBay Inc.’s business. Our platform relies on a data center

Increased operational cost >6 years Direct

About as likely as not Low

Electricity purchases were about 1% of eBay’s total operating expense in 2016 (~$40M USD). Data centers were responsible for 85% of that consumption, with other facilities comprising the other 15%. Using a conservative

eBay manages this risk by * managing growth in energy consumption and its associated costs * diversifying our energy supply to manage rate growth, and * by advocating for policies that could support a diverse energy market and provide predictability to

Managing energy cost increases are generally within the scope of current operations teams, so increases in staff costs are predicted to be minimal. Efficiency improvements represent cost savings, so no additional costs are anticipated for

https://www.cdp.net/sites/2017/97/5197/Climate%20Change%202017/Shared%20Documents/Attachments/CC4.1/GI_FY2016_Report_R3_04172017.pdf


Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial


method Cost of

management

portfolio that is responsible for more than 85% of our total energy consumption. Our customer support organization operates facilities 24 hours a day, 7 days per week, and our global staff count on being able to travel between offices and across geographies. Consequently, energy taxes and regulations could drive up energy prices, leading to increased costs to the company.

assumption that regulations or taxes increase energy prices by 25%, that would increase energy spend by about $10M. The relative percent of Opex would remain unchanged). Business travel is an insignificant, in terms of total % of spend for eBay.

future costs estimates. Activities to manage growth in energy consumption 2016 included a staff education energy efficiency campaign and a real-time energy monitoring system at our Dublin, Ireland location that are expected to decrease electricity use by nearly 5%. We have also diversified our energy supply by powering a significant portion of our owned data center in Salt Lake City, UT using fuel cells powered by natural gas. Given the very low prices for this commodity, this provides a hedge against large energy price spikes for the next several years. In 2016 we also benefitted when our largest co-location provider

those programs. On-site energy generation requires additional up-front budget, both operational (consultants, staff time) and capital. The scope of these costs is dependent on the projects chosen and cannot be accurately quantified at this time


Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial


method Cost of

management

was able to add utility cost predictability and 100% renewable energy to Las Vegas location. Through our membership organizations outlined in Questions 2.3c and 2.3g, we are actively advocating for policies that encourage a price on carbon and renewable energy availability at a price point at or near commercial rates. In 2016, eBay joined 99 other brands in a full page Wall Street Journal ad, emphasizing that US business supports a “Low Carbon USA.”


The potential for fuel and energy taxes and regulations expose eBay to risk both in terms of increased costs and decreased revenue. Our business model

Reduced demand for goods/services >6 years

Indirect (Client)

About as likely as not

Low-medium

Increased shipping costs could decrease the appeal of on-line buying and selling particularly for individual or small business sellers who do

eBay already works to help our sellers manage shipping costs, including offering a diverse selection of logistics partners, negotiated flat-rate shipping

Augmentation and expansion of existing programs to manage shipping costs are most likely to increase rather than decrease eBay revenue, so cost of


Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial


method Cost of

management

relies heavily on shipping and logistics, some of which is done directly by eBay Inc. businesses but the majority of which occurs downstream of and out of our direct control. Increasing energy prices could quickly translate into higher shipping and logistics costs. If those costs are passed on in the prices offered to customers on our commerce sites, this could drive down demand for on-line shopping.This could overall harm eBay’s business.

not enjoy the ability to negotiate favourable shipping contracts as a function of scale. It is hard to predict the relationship between increased costs and decreased selling activity, but for example, using our 2016 revenue of $8.6 billion, if there is a 5% reduction in activity, could mean $430 million in lost revenue..

supplies with carriers, guidance on right-sizing shipping packaging, and intermediation programs such as our Global Shipping Platform.

management is essentially zero.

CC5.1b Please describe your inherent risks that are driven by changes in physical climate parameters

Risk driver Description Potential impact Timeframe Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial


method Cost of

management

Change in precipitation extremes and droughts

eBay has facilities in 32 countries around the world (see Q0.3). Some of

Reduction/disruption in production capacity >6 years Direct

More likely than not Medium

Business disruptions as well as physical damage to facilities could increase costs

Business continuity, crisis management and emergency response processes are

Managing these risks is currently part of the normal course of business at


Likelihood

Magnitude of impact

Estimated financial


method Cost of

management

these locations are more vulnerable than others to potential physical changes from climate change. For instance in San Jose, CA, maps of potential sea level rise indicate that a 1 meter increase could submerge one of two major San Jose freeways and restrict access to the San Jose Airport. These risks could include disruption of our operations or physical damage to our facilities from floods, fires or other extreme weather events and possible sea level rise. Drought and other climate-related decreases in the availability of fresh water

and have potentially negative revenue impacts by restricting or disrupting altogether access to our platforms and services. Using 2016 revenue of $8.6 billion, a is a 5% reduction in productivity, could mean $430 million in lost revenue.

integrated at the corporate level to assure the safety of our employees and minimize the disruption to business operations. In addition, physical risks to operations are a key input to any expansion decision. eBay’s business is geographically diversified, and our physical risks are similar to but more dispersed than those of other retail or e-commerce companies. To help address water risks, eBay Inc. includes water availability and risk as part of its data center sighting policy and is driving water efficiency to decrease overall demand.

eBay so no additional costs over normal operational expenses are being incurred at this time.


Likelihood

Magnitude of impact

Estimated financial


method Cost of

management

could also pose a risk to our operations. This is most particularly the case for our data center operations. Water is essential for cooling, and prolonged shortages could ultimately result in service interruptions and costly relocation of data center services.

CC5.1c Please describe your inherent risks that are driven by changes in other climate-related developments


Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial


method Cost of

management

Changing consumer behavior

eBay is a global commerce company whose customers include hundreds of millions of users and millions of businesses. These individuals and companies could be affected by any number of climate change issues - including the financial impacts

Reduced demand for goods/services >6 years

Indirect (Client)


Low-medium

Diversion of users away from using our platforms could adversely affect our business results. For instance, using 2016 revenue of $6.1B for the eBay Marketplace, a 10% decrease in shopping on our that platform

The diversification of eBay’s business provides customers with options that could help mitigate lower demand for on-line shopping by offering new and augmented shopping experiences. For instance, in 2016 we expanded our intermediated selling services to increase customer

Managing changing consumer behaviour is inherent in eBay’s business model, so no additional management costs are anticipated at this time.


Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial


method Cost of

management

of fuel price volatility, weather volatility, sea level rise, etc. - which could present a general risk to our business. Our users may spend less time on our websites and our applications for mobile devices as a result of a variety of climate change-related diversions, including: geopolitical events, such as war, natural disasters; power shortages or outages, major public health issues, including pandemics; and other significant local, national or global events capturing the attention of a large part of the population. If any of these, or any other climate-related factors, divert our users from using of our websites or mobile applications, our

could mean as much as a 7% decrease in overall revenue (~$420M USD).

convenience, such as eBay Valet (intermediated selling) and Buy Online/Pickup in Store with retailers, pickup/dropoff lockers in major stores, like Argos in the UK. These are examples of how evolving programs can help reduce the business impacts of climate change.


Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial


method Cost of

management

business could be materially adversely affected. For instance, mobile commerce now comprises more than 40% of the traffic on eBay.com.

Further Information

Page: CC6. Climate Change Opportunities

CC6.1 Have you identified any inherent climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply Opportunities driven by changes in regulation Opportunities driven by changes in physical climate parameters Opportunities driven by changes in other climate-related developments

CC6.1a Please describe your inherent opportunities that are driven by changes in regulation

Opportunity driver Description Potential impact Timeframe Direct/Indirect Likelihood

Magnitude of impact

Estimated financial


method Cost of

management


Climate-related regulations are likely to result in increased prices for fuel and commodities, with some geographies experiencing higher price pressure than others. eBay Inc.’s portfolio companies, particularly the

Increased demand for existing products/services >6 years Direct


Low-medium

Changes in shopping behavior toward more on-line shopping, both for pre-owned and new goods, could increase eBay revenue. For example, using 2016 revenue of $8.6 billion, a

eBay’s portfolio of businesses are constantly assessing and responding to changing customer requirements and consumer sentiment. This includes expanding and evolving existing services as well as investigating

Managing and responding to changing consumer behaviour is inherent in eBay’s business model, so no additional management costs are anticipated at this time.


Magnitude of impact

Estimated financial


method Cost of

management

Marketplaces and Classifieds businesses, could benefit financially from this in a number of ways: - Increasing fuel and commodities prices could drive up the price of new goods overall, driving increased interest in pre-owned items. eBay is one of the world’s largest marketplaces for pre-owned goods – for instance, more than 1.4 million pre-owned smartphones were sold on eBay in the US and UK alone in 2016. A trend toward pre-owned over new items could translate into increased sales and revenue for

10% increase in on-line shopping would translate to $860 million in additional revenue.

new business models. eBay Valet (intermediated selling) and Click & Collect, which offers eBay pickup/dropoff lockers in major stores, make it easier and more convenient to sell pre-owned items. These services are helping increase the life of items and reduce demand for new ones, ultimately reducing the impacts of commerce on climate change. In 2016 our Click and Collect’ service in the UK, lets users drop off and pick up eBay items without a trip to the post office, celebrated its 10 millionth transaction.


Magnitude of impact

Estimated financial


method Cost of

management

eBay, as well as avoided carbon emissions and downstream economic benefit for buyers. - Higher fuel and goods prices in a particular region may drive up interest in on-line shopping, as consumers are able to comparison shop not only locally, but regionally and worldwide. - Higher transportation fuel prices could discourage consumers from driving to local stores and instead encourage them to shop on-line, increasing eBay revenue.

CC6.1b Please describe your inherent opportunities that are driven by changes in physical climate parameters

Opportunity driver

Description Potential impact Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial


method Cost of

management

Change in mean (average) temperature

eBay has evaluated likely physical climate parameters across our four geographies of operations: North America, Asia-Pacific, Latin America and Europe-Middle East-Africa, as well as in terms of their impacts on our marketplaces. We have concluded that eBay could realize indirect benefits if changing mean temperatures increase opportunities along the commerce value chain. Logistics companies could benefit from new shipping routes exposed by melting sea ice, meaning that some of the millions of packages sent after being sold on eBay may be able to be delivered in a

Increased demand for existing products/services >6 years

Indirect (Client)


Low-medium

Increased commerce activity (or decrease in commerce costs) could financially benefit eBay. For instance, using 2016 revenue of $6.1B for the eBay Marketplace, a 10% increase in shopping on our that platform could mean as much as a 7% increase in overall eBay revenue.

eBay’s portfolio of businesses (Marketplaces, StubHub, Classifieds) are constantly assessing and responding to changing customer requirements and consumer sentiment. This includes making sure we have sellers offering goods that people need and want to buy. eBay also maintains strong relationships with carrier partners to make the shipping that happens via eBay easier, more cost effective and more reliable. . For instance, in 2016 eBay partnered with FedEx to bring eBay Valet drop-off locations to over 1600 FedEx Kinkos locations. This greatly simplifies the selling process, particularly for new sellers. These

Managing and responding to changing consumer behaviour is inherent in eBay’s business model, so no additional management costs are anticipated at this time.

Opportunity driver

Description Potential impact Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial


method Cost of

management

more expedited fashion if logistics companies can reduce shipping time. Retailers might identify products that support adaptation to rising or falling temperatures and precipitation that buyers want. This increased commerce activity could drive increases in eBay revenue.

relationships will continue to be essential as commerce adapts to climate change opportunities.

CC6.1c Please describe your inherent opportunities that are driven by changes in other climate-related developments

Opportunity driver

Description Potential

impact Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial


method Cost of

management

Reputation

Investors are increasingly expecting companies to manage their climate risk and look for financial opportunity in a low-carbon market. Consumers are increasingly aligning their personal values with buying behaviors, and are looking for

Increased stock price (market valuation) >6 years Direct


Low-medium

eBay does business in a strongly competitive environment that is under increasing scrutiny from stakeholders such as investors. Increased positive brand recognition and sentiment could translate into positive competitive advantage and

A key focus of eBay’s Global Impact approach is increasing the frequency and quality of our disclosures related to our environmental, social and governance performance. Our Global Impact website is updated annually and is the most comprehensive overview of our

Stakeholder engagement, transparency and related external activities are a normal part of our work, so we expect no additional costs to be incurred in communicating about our response to climate change.

Opportunity driver


impact Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial


method Cost of

management

shopping destinations that support their choices. Employees are increasingly looking for meaning in their work beyond a paycheck and want to work for companies that let them live their values. All of these trends play to eBay’s strengths. Our approach to climate change prioritizes both increased circular commerce activity on our platforms, avoiding carbon emissions that would have been generated in production of new items, and renewable energy, which will decrease the carbon footprint of our business. And our Global Impact strategy and approach aligns strongly with eBay’s

increased stock price. For example, if the 12-month price target of $35/share issued by analysts in 2016 increased by 10%, each share would then be work $38.50.

approach to these issues and has been positively received by key external stakeholders. In addition, the GI team deepens engagement with stakeholders and other companies on key issues through strategic memberships, such as the Circular Economy 100 and the Renewable Energy Buyers Alliance.

Opportunity driver


impact Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial


method Cost of

management

culture and brand, making it an attractive place to start and grow careers.

Further Information

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading Page: CC7. Emissions Methodology

CC7.1 Please provide your base year and base year emissions (Scopes 1 and 2)

Scope Base year Base year emissions (metric tonnes CO2e)

Scope 1 Thu 01 Jan 2015 - Thu 31 Dec 2015 25622

Scope 2 (location-based) Thu 01 Jan 2015 - Thu 31 Dec 2015 122320

Scope 2 (market-based) Thu 01 Jan 2015 - Thu 31 Dec 2015 135481

CC7.2 Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you use

The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)

CC7.2a If you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions CC7.3 Please give the source for the global warming potentials you have used

Gas Reference

CO2 IPCC Fifth Assessment Report (AR5 - 100 year)

CH4 IPCC Fifth Assessment Report (AR5 - 100 year)

HFCs IPCC Fifth Assessment Report (AR5 - 100 year)

PFCs IPCC Fifth Assessment Report (AR5 - 100 year)

N2O IPCC Fifth Assessment Report (AR5 - 100 year)

SF6 IPCC Fifth Assessment Report (AR5 - 100 year)

CC7.4 Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page

Fuel/Material/Energy Emission Factor Unit Reference

Further Information

Attachments

eBay_Emission Factor Summary for CDP_06-26-2017.xlsx

Page: CC8. Emissions Data - (1 Jan 2016 - 31 Dec 2016)

CC8.1 Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory Operational control

CC8.2 Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e 26471

CC8.3 Please describe your approach to reporting Scope 2 emissions

Scope 2, location-based Scope 2, market-based Comment

We are reporting a Scope 2, location-based figure We are reporting a Scope 2, market-based figure

CC8.3a Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e

Scope 2, location-based Scope 2, market-based (if applicable) Comment

170635 83500

CC8.4 Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure? Yes

CC8.4a Please provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure

Source

Relevance of Scope 1 emissions from this source

Relevance of location-based Scope

2 emissions from this source

Relevance of market-based Scope 2 emissions

from this source (if applicable) Explain why the source is excluded

Sites determined to be de minimis

Emissions are not relevant

Emissions are not relevant Emissions are not relevant

De minimis sites consist of small service offices without full-time staff and for which eBay does not have access to complete and reliable information for the period in question

Fuel use by small vehicles/equipment

Emissions are not evaluated

Emissions are not relevant Emissions are not relevant

It is likely that small amounts of diesel and gasoline consumption by campus and other support vehicles are not included in Scope 1 emissions estimates. eBay considers these emissions to be an insignificant contributor to the overall Scope 1 inventory total.

CC8.5

https://www.cdp.net/sites/2017/97/5197/Climate%20Change%202017/Shared%20Documents/Attachments/ClimateChange2017/CC7.EmissionsMethodology/eBay_Emission%20Factor%20Summary%20for%20CDP_06-26-2017.xlsx

Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations

Scope Uncertainty range Main sources of

uncertainty Please expand on the uncertainty in your data

Scope 1 More than 10% but less than or equal to 20%

Data Gaps Assumptions Other: Estimations

Scope 1 uncertainty is driven largely by estimation for natural gas and fuel oil/diesel consumption and refrigerant use, primarily at office locations.

Scope 2 (location-based)

More than 10% but less than or equal to 20%


Scope 2 uncertainty is driven largely by estimation for electricity consumption, primarily at office locations.

Scope 2 (market-based)

More than 10% but less than or equal to 20%


Scope 2 uncertainty is driven largely by estimation for electricity consumption, primarily at office locations.

CC8.6 Please indicate the verification/assurance status that applies to your reported Scope 1 emissions No third party verification or assurance

CC8.7 Please indicate the verification/assurance status that applies to at least one of your reported Scope 2 emissions figures No third party verification or assurance

CC8.8 Please identify if any data points have been verified as part of the third party verification work undertaken, other than the verification of emissions figures reported in CC8.6, CC8.7 and CC14.2

Additional data points verified Comment

No additional data verified

CC8.9 Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization? No

Further Information

Page: CC9. Scope 1 Emissions Breakdown - (1 Jan 2016 - 31 Dec 2016)

CC9.1 Do you have Scope 1 emissions sources in more than one country? Yes

CC9.1a Please break down your total gross global Scope 1 emissions by country/region

Country/Region Scope 1 metric tonnes CO2e

Australia 13.64

Country/Region Scope 1 metric tonnes CO2e

Belgium 24.81

Canada 40.81

China 286.2

Czech Republic 660.45

Denmark 38.95

France 127.01

Germany 703.51

India 176.30

Ireland 211.91

Israel 286.49

Italy 5.12

South Korea 2128.71

Luxembourg 25.84

Malaysia 25.97

Netherlands 58.14

Singapore 27.74

Spain 23.04

Switzerland 63.32

Taiwan 9.07

Thailand 1.21

Turkey 116.21

United Kingdom 365.07

United States of America 21035.58

Vietnam 2.76

South Africa .23

CC9.2 Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply) By business division By GHG type By activity

CC9.2a Please break down your total gross global Scope 1 emissions by business division

Business division Scope 1 emissions (metric tonnes CO2e)

Africa .23

Asia/Pacific 2676.37

Business division Scope 1 emissions (metric tonnes CO2e)

Europe 2716.49

North America 21077.75

CC9.2c Please break down your total gross global Scope 1 emissions by GHG type

GHG type Scope 1 emissions (metric tonnes CO2e)

CO2 25640.51

CH4 4.89

N2O 7.62

Other: Refrigerants 817.82

CC9.2d Please break down your total gross global Scope 1 emissions by activity

Activity Scope 1 emissions (metric tonnes CO2e)

Fuel Cells 16978.15

Corporate Jet 1274.91

Diesel 169.99

Natural Gas 7229.98

Refrigerants 817.82

Further Information

Page: CC10. Scope 2 Emissions Breakdown - (1 Jan 2016 - 31 Dec 2016)

CC10.1 Do you have Scope 2 emissions sources in more than one country? Yes

CC10.1a Please break down your total gross global Scope 2 emissions and energy consumption by country/region

Country/Region

Scope 2, location-based (metric tonnes

CO2e)

Scope 2, market-based (metric tonnes

CO2e)

Purchased and consumed electricity, heat, steam or

cooling (MWh)

Purchased and consumed low carbon electricity, heat, steam or cooling accounted in market-based

approach (MWh)

Australia 1506.77 1267.71 1725.36 0

Belgium 10.76 17.42 40.15 0

Canada 60.51 23.86 588.36 0

China 1677.73 1447.08 2128.74 0

Czech Republic 60.33 68.15 117.01 0

Denmark 157.24 233.16 614.6 0

France 2.05 0.84 22.53 0

Germany 2665.92 2331.42 7633.65 4556.45

Country/Region

Scope 2, location-based (metric tonnes

CO2e)

Scope 2, market-based (metric tonnes

CO2e)

Purchased and consumed electricity, heat, steam or

cooling (MWh)

Purchased and consumed low carbon electricity, heat, steam or cooling accounted in market-based

approach (MWh)

India 2018.14 1738.85 2139.31 0

Ireland 1700.38 736.19 2910.75 1758.67

Israel 1027.68 870.07 1339.03 0

Italy 47.79 51.23 117.88 0

Luxembourg 281 431.22 857.36 0

Malaysia 53.74 64.22 96.49 0

Netherlands 2551.83 3794.54 6599.55 0

Singapore 90.96 73.73 167.22 0

South Africa 1.03 1.23 1.22 0

South Korea 14791.87 17717.46 32282.28 0

Spain 27.29 37.48 85.42 0

Switzerland 13.42 20.19 420.01 0

Taiwan 400.85 368.64 634.58 0

Thailand 6.44 6.43 12.11 0

Turkey 179.12 0 413.83 413.83

United Kingdom 681.77 714.80 1480.40 0

United States of America 140680.57 51438.81 260884.56 217210.50

Russia 27.05 30.38 80.03 0

South Africa 1.03 1.23 1.22

CC10.2 Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply) By business division By activity

CC10.2a Please break down your total gross global Scope 2 emissions by business division

Business division Scope 2, location-based (metric tonnes CO2e) Scope 2, market-based (metric tonnes CO2e)

Africa 1.23 1.03

Asia/Pacific 22724.25 20583.29

Europe 9308.91 9407.16

North America 51465.23 140743.63

CC10.2c Please break down your total gross global Scope 2 emissions by activity

Activity Scope 2, location-based (metric tonnes CO2e) Scope 2, market-based (metric tonnes CO2e)

Electricity 83429.32 170664.82

Steam 70.29 70.29

Further Information

Page: CC11. Energy

CC11.1 What percentage of your total operational spend in the reporting year was on energy? More than 0% but less than or equal to 5%

CC11.2 Please state how much heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type MWh

Heat 0

Steam 310.4

Cooling 0

CC11.3 Please state how much fuel in MWh your organization has consumed (for energy purposes) during the reporting year 45720

CC11.3a Please complete the table by breaking down the total "Fuel" figure entered above by fuel type

Fuels MWh

Natural gas 39893

Diesel/Gas oil 671.30

Jet kerosene 5155.5

CC11.4 Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the market-based Scope 2 figure reported in CC8.3a

Basis for applying a low carbon emission factor

MWh consumed associated with low

carbon electricity, heat, steam or cooling

Emissions factor (in units of metric tonnes CO2e per

MWh) Comment

Off-grid energy consumption from an on-site installation or through a direct line to an off-site generator owned by another company 275.29 0 665 KW solar array, Salt Lake City Utah data center site

Energy attribute certificates, Guarantees of Origin 12697.74 0

100% renewable energy option purchased from utility providers for sites in Dublin, Ireland, Berlin and Dreilinden, Germany, and Istanbul, Turkey

Basis for applying a low carbon emission factor

MWh consumed associated with low

carbon electricity, heat, steam or cooling

Emissions factor (in units of metric tonnes CO2e per

MWh) Comment

Energy attribute certificates, Renewable Energy Certificates (RECs) 162544.15 0

RECs purchased via Rocky Mountain Power “Blue Skies” program equivalent to 100% of total energy use for Draper, UT site; RECs purchased via Arizona Public Service equivalent to 100% of total energy use for Phoenix owned data centers; RECs purchased through NV Energy equivalent to 100% of total energy use for co-located data centers in Nevada; RECs purchased via PacifiCorp of OR equivalent to 100% of total energy use Porland, OR site.

CC11.5 Please report how much electricity you produce in MWh, and how much electricity you consume in MWh

Total electricity consumed (MWh)

Consumed electricity that is purchased (MWh)

Total electricity produced (MWh)

Total renewable electricity produced

(MWh) Consumed renewable electricity that

is produced by company (MWh) Comment

373589.39 324891.84 48697.55 275.29 275.29

Further Information

Page: CC12. Emissions Performance

CC12.1 How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year? Decreased

CC12.1a Please identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year

Reason Emissions value

(percentage) Direction of

change Please explain and include calculation

Emissions reduction activities 19 Decrease

The emission reduction activities implemented during the year as detailed in CC3.3 had a combined CO2 savings of 28,465.7 tCO2e. Total S1 and S2 emissions in the previous year were 147,941.1 tCO2e, therefore we arrived at 19% through (28,465.7/147,941.1)*100 = 19%

Divestment Acquisitions Mergers

Change in output 8 Decrease

Due to regular changes in updated electricity emission factors, we estimate that S2 emissions were reduced compared to the previous year by 20,807.5 tCO2e. Therefore, we arrived at 14% through (20,807.5/147,949.1)*100 = 14%

Change in methodology 14 Decrease

Due to regular changes in updated electricity emission factors, we estimate that S2 emissions were reduced compared to the previous year by 20,807.5 tCO2e. Therefore, we arrived at 14% through (20,807.5/147,949.1)*100 = 14%

Change in boundary

Reason Emissions value


change Please explain and include calculation

Change in physical operating conditions Unidentified Other

CC12.1b Is your emissions performance calculations in CC12.1 and CC12.1a based on a location-based Scope 2 emissions figure or a market-based Scope 2 emissions figure? Market-based

CC12.2 Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

Intensity figure =

Metric numerator (Gross global combined Scope 1

and 2 emissions)

Metric denominator:

Unit total revenue

Scope 2 figure used

% change from

previous year

Direction of change from

previous year Reason for change

.0000122 metric tonnes CO2e 8979000000 Market-based 34.68 Decrease

This intensity calculation incorporates both Scope 1 & 2 emissions in the numerator. However, the majority of the decrease in intensity is the result of Scope 2 reductions from REC and renewable energy purchases at multiple sites.

CC12.3 Please provide any additional intensity (normalized) metrics that are appropriate to your business operations

Intensity figure =

Metric numerator (Gross

global combined Scope 1 and 2 emissions)

Metric denominator

Metric denominator:

Unit total

Scope 2 figure used

% change from

previous year

Direction of change from

previous year Reason for change

8.73 metric tonnes CO2e

full time equivalent (FTE) employee 12600

Market-based 37.16 Decrease

This intensity calculation incorporates both Scope 1 & 2 emissions in the numerator. However, the >50% decrease in carbon intensity per employee is primarily the result of Scope 2 reductions from REC and renewable energy purchases at multiple sites.

Further Information

Page: CC13. Emissions Trading

CC13.1 Do you participate in any emissions trading schemes? No, and we do not currently anticipate doing so in the next 2 years

CC13.2 Has your organization originated any project-based carbon credits or purchased any within the reporting period? No

Further Information

Page: CC14. Scope 3 Emissions

CC14.1 Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources of Scope 3 emissions

Evaluation status

metric tonnes CO2e Emissions calculation methodology

Percentage of emissions

calculated using data obtained

from suppliers or value chain

partners Explanation

Purchased goods and services

Relevant, calculated 256570

Emissions were calculated using an input-output life cycle assessment approach for 100% spend data for purchased goods and services, as well as capital goods (see explanation) over the reporting period. All values represent cradle-to-gate emissions across all GHG emissions identified in the GHG Protocol Value Chain Standard and GWP values from the IPCC Fifth Assessment Report. 0.00%

Due to lacking granularity in accounting data used for the spend analysis, capital goods could not be separated from all other procured goods and services. As such, these emissions are embedded in the Category 1 estimate.

Capital goods Relevant, calculated 0 See explanation for Category 1 0.00%

Due to lacking granularity in accounting data used for the spend analysis, capital goods could not be separated from all other procured goods and services. As such, these emissions are embedded in the Category 1 estimate.

Fuel-and-energy-related activities (not included in Scope 1 or 2)


Emissions were calculated using data on ebay's energy consumption across ebay’s site offices and data centers, as reported in Question 11.2-11.3. Emissions factors were based on the Ecoinvent 3.1 model. Values were calculated using GWP values from the IPCC Fifth Assessment Report and represent upstream emissions from the production and transportation of fuels consumed by ebay sites in the reporting year as well as T&D losses associated with electricity use. 0.00%


Evaluation status






Upstream transportation and distribution


Emissions were calculated using an input-output life cycle assessment approach for 100% spend data for transportation and other logistics services over the reporting period. All values represent cradle-to-gate emissions across all GHG emissions identified in the GHG Protocol Value Chain Standard and GWP values from the IPCC Fifth Assessment Report. 0.00%

Waste generated in operations


All emissions associated with purchased waste management and wastewater treatment services were calculated using estimated total spend on waste management and emission factors derived from country-specific production functions from the U.S. national input-output database. 0.00%

Physical waste and wastewater data for a bottom up analysis were not available at the time of this analysis, and thus a spend analysis was required. Lack of granularity in utility spend made it very difficult to parse out spend on waste management and wastewater treatment. As such, the average percentage spend on waste management and wastewater treatment by the data processing and hosting industry was used to estimate ebay’s total spend for these topics. This method is likely to overestimate actual emissions, but given that this category represents a very small proportion of our total footprint, this method was considered reasonable.

Business travel Relevant, calculated 15111

Values represent all emissions associated with purchased air travel and rental cars. Emissions were calculated using miles flown and driven in rental cars by ebay employees and emissions factors specific to air travel distance and average emissions per mile for rental cars. 6.65%

Employee commuting


Emissions were estimated using the total number of ebay employees, an assumed breakdown of commuting patterns (mode and distance) based on American Community Survey Reports published by the U.S. Census Bureau and average emissions factors for U.S. 0.00%


Evaluation status






automobiles and mass transit from WRI's GHG Protocol Calculation Tools.

Upstream leased assets

Not relevant, explanation provided

The emissions from eBay’s leased assets (real estate) are accounted for under Scope 1 & 2

Downstream transportation and distribution


eBay Inc. does not produce goods for sale. Our “product” is our platform, whose emissions are accounted for under Scope 1 & 2.

Processing of sold products



Use of sold products



End of life treatment of sold products

Not relevant, explanation provided eBay Inc. does not manufacture products.

Downstream leased assets


eBay Inc.’s downstream leased assets are minimal and therefore not evaluated.

Franchises

Not relevant, explanation provided eBay does not operate franchises.

Investments


eBay is not a financial institution and thus this category is not relevant to you (per Scope 3 guidance in GHGP)

Other (upstream) Not evaluated

Other (downstream)

Not evaluated

CC14.2 Please indicate the verification/assurance status that applies to your reported Scope 3 emissions No third party verification or assurance

CC14.3

Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources? Yes

CC14.3a Please identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year

Sources of Scope 3

emissions Reason for

change Emissions value


change Comment

Business travel

Emissions reduction activities 21.4 Decrease

eBay instituted programs and efforts to raise awareness about the benefits of reduced footprints by reducing business travel, including company-wide efforts to limit trips and more intensely utilize telepresence and other communication technologies.

CC14.4 Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply) Yes, our suppliers

CC14.4b To give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent

Type of engagement

Number of suppliers

% of total spend (direct and indirect) Impact of engagement

Other: Renewable energy 10 0%

Spend % not included for proprietary reasons. eBay is a founding member of the Future of Internet Power working group, which has the goal of powering the internet with 100% renewable energy. In 2016 this group created, and eBay signed, the Corporate Co-Location and Cloud Buyers’ Principles. These principles outline six criteria that companies using colo services would like to see their colo service providers meet, such as providing data on customer energy consumption, disclosing facility energy sources, and supporting renewable energy advocacy efforts. eBay has been engaging our co-location providers about cleaner energy for some time, and the Principles offer another tool for continuing that engagement. In 2016 our largest provider, Switch, converted all of their locations in Nevada to renewable power, resulting in a nearly 50% reduction in our data center-related GHG emissions. A copy of the Principles is attached to this page for reference.

Further Information

Attachments

BSR_Corporate_Colocation_Cloud_Buyers_Principles.pdf

Module: Sign Off Page: CC15. Sign Off

CC15.1 Please provide the following information for the person that has signed off (approved) your CDP climate change response

Name Job title Corresponding job category

Devin Wenig Chief Executive Officer Chief Executive Officer (CEO)

Further Information

https://www.cdp.net/sites/2017/97/5197/Climate%20Change%202017/Shared%20Documents/Attachments/ClimateChange2017/CC14.Scope3Emissions/BSR_Corporate_Colocation_Cloud_Buyers_Principles.pdf

Module: ICT Page: ICT1. Data center activities

ICT0.1a Please identify whether "data centers" comprise a significant component of your business within your reporting boundary Yes

ICT1.1 Please provide a description of the parts of your business that fall under “data centers” Data centers are at the heart of eBay's business. Our Global Foundation Services team provides the backend infrastructure for our portfolio of businesses including eBay.com, StubHub, and eBay Classifieds, among others. In addition, our DC infrastructure supports many of the key IT functions for our thousands employees. eBay's Scope 1 and Scope 2 inventory includes both our owned data center sites in Salt Lake City, Utah and Phoenix Arizona, a s well as our various co-location sites including Las Vegas, Nevada.

ICT1.2 Please provide your absolute Scope 1 and 2 emissions and electricity consumption for the data centers component of your business

Business activity

Scope 1 emissions (metric tonnes CO2e)

Scope 2 emissions (metric tonnes CO2e)

Annual electricity consumption (MWh)

Electricity data collection method Comment

Data centers 17157 115238 309547 Meter or submeter reading

Scope 2 emissions use a market-based figure

ICT1.3 What percentage of your ICT population sits in data centers where Power Usage Effectiveness (PUE) is measured on a regular basis?

Percentage Comment

75% This percentage represents our three primary data center sites in Las vegas, Nevada, Salt Lake City, Utah, and Phoenix, Arizona

ICT1.4 Please provide a Power Usage Effectiveness (PUE) value for your data center(s). You can provide this information as (a) an average, (b) a range or (c) by individual data center - please tick the data you wish to provide (tick all that apply) Range

ICT1.4b Please provide the range of PUE values across your data centers

Number of data centers

PUE Minimum Value

% change of PUE Minimum Value from previous year

PUE Maximum Value

% change of PUE Maximum Value from previous year

Direction of change Comment

3 1.163 9 1.669 1 Decrease

ICT1.5 Please provide details of how you have calculated your PUE value Green Grid, or Total Facility Power divided by IT Equipment Power

ICT1.6 Do you use any alternative intensity metrics to assess the energy or emissions performance of your data center(s)? Yes

ICT1.6a

Please provide details on the alternative intensity metrics you use to assess the energy or the emissions performance of your data center(s) eBay regularly measures and internally reports carbon usage effectiveness and water usage effectiveness, in addition to PUE. We also continue to track the energy mix of our data center load in order to measure progress towards our renewable ene rgy objectives.

ICT1.7 Please identify the measures you are planning or have undertaken in the reporting year to increase the energy efficiency of your data center(s)

Status in reporting year Energy efficiency measure Comment

ICT1.8 Do you participate in any other data center efficiency schemes or have buildings that are sustainably certified or rated? No

ICT1.9 Do you measure the utilization rate of your data center(s)? Yes

ICT1.9a What methodology do you use to calculate the utilization rate of your data center(s)? eBay uses internally-developed metrics to assess utilization, including: • Measuring the key variables of revenue, cost, performance, and environmental impact based on user consumption of services p rovided • Tuning the infrastructure engine by identifying the knobs that can be adjusted at all levels • Optimizing effectiveness by striking a balance between the interconnected variables

ICT1.10 Do you provide carbon emissions data to your clients regarding the data center services they procure? No

ICT1.11 Please describe any efforts you have made to incorporate renewable energy into the electricity supply to your data center(s) or to re-use waste heat eBay is a founding member of the Future of Internet Power working group, which has the goal of powering the internet with 100 % renewable energy. In 2016 this group created, and eBay signed, the Corporate Co-Location and Cloud Buyers’ Principles. These principles outline six criteria that companies using colo services would like to see their colo service providers meet, such as providing data on customer energy consumption, disclosi ng facility energy sources, and supporting renewable energy advocacy efforts. eBay has been engaging our co-location providers about cleaner energy for some time, and the Principles offer another tool for continuing that engagement. In 2016 our largest provider, Switch, converted all of their locations in Nevada to renewable power, resulting in a nearly 50% reduction in our data center-related GHG emissions.

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Page: ICT2. Provision of network/connectivity services

ICT0.1b Please identify whether "provision of network/connectivity services" comprises a significant component of your business within your reporting boundary No

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Page: ICT3. Manufacture or assembly of hardware/components

ICT0.1c

Please identify whether "manufacture or assembly of hardware/components" comprises a significant part of your business within your reporting boundary No

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Page: ICT4. Manufacture of software

ICT0.1d Please identify whether "manufacture of software" comprises a significant component of your business within your reporting boundary No

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Page: ICT5. Business services (office based activities)

ICT0.1e Please identify whether "business services (office based activities)" comprise a significant component of your business within your reporting boundary No

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Page: ICT6. Other activities

ICT0.1f Please identify whether "other activities" comprise a significant component of your business within your reporting boundary No

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